Vancouver Stock Exchange Prime group dominates trading

Although investors appear to be less bearish on gold prices even without becoming bullish, the outlook for base metals isn’t as bright as it was just months ago. And brokers say that’s another reason why investors will be turning to companies with promising precious metal prospects.

At noon today, Nov 29, trading was relatively light, with the VSE index down 1.87 points to 713.37.

Inter-Globe Resources was among the few resource issues active today, up 7 cents to 22 cents . The company’s Gibellini project is temporarily on hold because of a decline in world prices of vanadium. But the company has an agreement with Highland Queen Mines to acquire a 50% interest in a claim group near Viceroy Resources’ Castle Mountain gold deposit in California.

O’Hara Resources, which recently announced plans for a telecommunications venture, was also active today and holding at 29 cents .

Once again it was Prime group companies dominating trading for the week ended Nov 28. Calpine Resources was the volume leader, adding 25 cents to settl e at $5.50. Prime Resources was up a nickel to $2.10. In several weeks shareholders of both companies will be voting on a proposed merger between the two associated companies.

George Oughtred, a director of Stikine Resources and former Calpine president, is leading a group of Calpine minority shareholders demanding an independent engineering evaluation of the assets of both companies, particulary Calpine’s 50% interest in the Eskay Creek deposit north of Stewart, B.C.

We gather trading activity in Pak-Man Resources has to do with a dril l program by Inco Ltd. on the Nick property in the Yukon’s Mayo mining district. The 1988 drill program financed by Pak-Man and 2001 Resources is reported to have revealed grades of up to 5% nickel associated with a distinctive suite of trace metals: platinum, palladium, silver, gold, zinc, molybdenum, arsenic and barium. Results of the Inco drilling (the company can earn a 60% interest) are expected shortly. In the meantime Pak-Man gained 19 cents to 42 cents .

Goldbelt Mines was active during the past several weeks although the issue slipped a nickel to settle at 55 cents for this week. Headed by former Granges directors Mike Muzylowski and Douglas McRae, Goldbelt has assembled a substantial land package in the Galore Creek region, about 50 miles from the Eskay Creek discovery. The company also picked up 10,000 acres between Val d’Or and Amos, Quebec, which are said to be in a similar volcanic belt to that hosting the Aur-Louvem discovery. Because of Muzylowski’s impressive mine-finding record and McRae’s financing abilities, Corona Corp. is backing this junior company.

Recent interest in High Reserve Resources is prompted by a possible acquisition of a heap leachable gold deposit in California. The issue was up 4 cents to 29 cents .

Adrian Resources lost 1 cents to $1.20 in active trading. The Prime company is involved with NDU Resources and Silverquest Resources in the Hyland gold property near Watson Lake, Y.T. A $1-million exploration program was approved for 1990 that will involve 70 reverse circulation drill holes totalling 19,500 ft. The property is reported to host widespread gold mineralization in silicified stockwork and breccia zones associated with a large fault complex cutting sedimentary rocks.

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